Abstract

Insurance surplus is the remaining's of participant shares, reserves and interest after discounting and compensation during the year. In the exchanged insurance, so called surplus is the participants property and should be spent on them, all or part of it and this is called "profit " in commercial insurance and owned by companies. The surplus distribution mechanism somehow influences the activity of the exchanged insurance; hence this study came to enlighten all the problems might occur in and in the application of it. The study explains the concept of insurance surplus and how it is distributed and how it is treated in the Jordanian and Sudanese law and the legitimate standard (no:26) from the Islamic financial institution account and review council taking into consideration the Saudi legislation view point since the Iraq legislation any rules for the exchanged insurance or any solutions for its insurance surplus distribution mechanism is not organized in a way that may help to increase insurance surplus and help to choose the appropriate distribution mechanism in order to prevent the growth of the exchanged insurance.